Bank of Ireland increase differential on tracker rates
The story of the Bank of Ireland decision to increase to the differential (interest rate margin) on tracker mortgages started on this forum when a professional landlord contacted Property118 within minutes of a letter from Bank of Ireland landing on his door mat. What ensued was outrage from landlords and affected residential mortgage borrowers. The story was quickly picked up by the National Media as it wasn’t just the 13,500 affected borrowers who were worried.
Will this set a precedent for other mortgage lenders to follow?
Property118 reacted by using funds donated to The GOOD Landlords Campaign to underwrite the cost of a barristers opinion on the legality of the Bank of Ireland’s actions. The remainder of this thread,one of the most read and most commented threads of all time on Property118, continues to tell the story as it unfolds.
If you want to skip the story and cut to the chase simply CLICK HERE
Of the 13,500 affected borrowers, 1,200 have had the decision reversed by Bank of Ireland. With additional support and pressure we believe all affected borrowers can and will see justice done.
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Lee, a professional Landlord asks, “help! I have just received a letter from the Bank of Ireland stating they want to increase the differential on my tracker rates.
I have 12 mortgages with the Bank of Ireland previously Bristol and West. I have been on a base rate tracker of 1.75% above base, but now Bank of Ireland are using some fine print claiming they have to recapitalise and saying the ‘new differential will be 4.49%.
How can I fight back?”
The original policy wording seems to be:
6 INTEREST
Charging interest at a tracker rate
(j) Unless we change the differential (if any) under condition 6 (n), we will not change the tracker rate unless the base rate changes.
(m) in condition 6 (n):
– a “positive differential” means a percentage which we add to the base rate to arrive at the tracker rate; and a “negative differential” means a percentage which we subtract from the base rate to arrive at the tracker rate.
(n) We may reduce a positive differential or increase a negative differential at our discretion by giving you not less than seven days written notice. This means that we can change the differential in a way that is favourable to you.
The above seems to indicate that they can reduce the rate in my favour, but not give them the right to increase it. Am I correct?
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Member Since March 2015 - Comments: 3
5:05 PM, 26th March 2015, About 11 years ago
Goverments or mps are powerless it’s banks and large corporations that have control of what happens.why dont we all set up a article and put it in facebook or twitter see if you can get say 50000 likes . A small little article in the paper goes unoticed as bank of ireland and west bromwich wouldn’t want any bad publicity .Attack them through social media.It’s my first time on this forum i did not come up with money supporting this case as i live in a deprived area in wales with a very small morgage so £1500 wouldn’t of be really viable as it would take 4 -5 years to break even in the 1500 but would of been happy to make a small donation supporting the case
Member Since September 2013 - Comments: 20
5:58 PM, 26th March 2015, About 11 years ago
Hi Mark, after my complaint was rejected and I replied to say I did not accept this (I still don’t understand why they ask that question?) I asked the guy that dealt with my complaint some questions and he directed me to the website but it is not easy to find the relevant cases, the search facility is not great and the way the are logged makes it impossible unless you have lots of time go into each link. So I decided to submit an FOI. I am not sure if I am entitled to know why other complaints where upheld. If this information is posted on their website, albeit anonymously then I assume it is in the public domain so I can request under another FOI.
Member Since January 2011 - Comments: 12193 - Articles: 1395
6:06 PM, 26th March 2015, About 11 years ago
Reply to the comment left by “Cheryl Larkin” at “26/03/2015 – 17:58“:
I concur with your logic, go for it!
.
Member Since October 2013 - Comments: 35
7:34 PM, 26th March 2015, About 11 years ago
I note comments in Irish Times about BOI considering ‘bolt on’ acquisitions in UK so worth watching for opportunities to embarrass them via social media etc.
Also Black Panther has mentioned the Millar case in Republic of Ireland. There have been other judgments there against various banks which might be useful.
Can I also remind all that BOI only incorporated in the UK in the last few years, prior to that – and at the time when all these mortgage contracts were issued – the primary regulators were the Irish authorities – anyone though about pursuing them??
I distinguish between regulators & consumer protectionists which is what FOS is meant to be
Member Since October 2013 - Comments: 35
9:26 PM, 29th March 2015, About 11 years ago
http://www.irishtimes.com/business/financial-services/laffoy-comments-may-affect-bosi-distressed-mortgages-1.2157618
Thought this might be fascinating given the various changes of brands /ownership etc affecting BOI /B&W mortgages – who actually is the holder of registered charges on properties. One for Cotswold I think…….
Member Since October 2013 - Comments: 108
9:22 AM, 6th April 2015, About 11 years ago
Reply to the comment left by “GHH 64” at “29/03/2015 – 21:26“:
I was expecting to hear from Cotswold, haven’t had an email, perhaps they wrote.
I am away on holiday !
Member Since November 2013 - Comments: 85
9:54 AM, 6th April 2015, About 11 years ago
Cheryl, why I won’t help? I’m in business, I’m not a charity, most people here won’t even help themselves so why should I give away my skills, experience and all the time I’ve spent on this?
Member Since November 2013 - Comments: 252 - Articles: 10
10:01 AM, 6th April 2015, About 11 years ago
Dear Tricia and others,
We will have a proposal for the next stage within the next few days.
Mark S
Member Since June 2013 - Comments: 1121
10:03 AM, 6th April 2015, About 11 years ago
Reply to the comment left by “Paul Brindley” at “06/04/2015 – 09:54“:
Agreed Paul. There is a difference between posting advice on a forum and getting involved in a case. And there has been a lethargy on the BOI case which has now led me to clearing the mortgage and moving on. Theres a saying where I come from.”Dont keep flogging a dead horse” – well the BOI Protest Horse is probably burgers in Tesco now.
Member Since October 2013 - Comments: 108
10:40 AM, 6th April 2015, About 11 years ago
Reply to the comment left by “Mark Smith (Barrister-At-Law)” at “06/04/2015 – 10:01“:
Thanks Mark, I’ll try to be a bit more patient……